Jersey City has announced that its municipal pension plan will invest in Bitcoin (BTC) through spot Bitcoin ETFs, in what is being called a symbolic moment for the cryptocurrency industry as it considers wider adoption.
Jersey City’s announcement comes after a similar announcement by the state of Wisconsin, which purchased nearly $100 million worth of BlackRock’s spot Bitcoin ETF.
Jersey City’s Spot Bitcoin ETF Plans
The decision to allocate a percentage of the city’s pension fund to purchase Bitcoin ETFs was announced in a post by the city’s mayor, Steven Fulop. In the post, Fulop outlined his support for cryptocurrencies, particularly Bitcoin.
“The question on whether Crypto/Bitcoin is here to stay is largely over + crypto/Bitcoin won. The #JerseyCity pension fund is in the process of updating paperwork to the SEC to allocate % of the fund to Bitcoin ETFs, similar to what the Wisconsin Pension Fund has done (2%). It Will be completed by the end of the summer, and I’m sure eventually it will be more common.”
It’s expected that the allocation will not be a significant sum, but it is being viewed as a historic moment for crypto in its quest for broader adoption. Fulop added that the pension fund, the Employees Retirement System of Jersey City, is in the process of updating its paperwork with the Securities and Exchange Commission (SEC) to allocate a percentage of the fund towards Bitcoin ETFs, adding that the investment will be completed by the end of summer.
A Long-time Supporter Of Crypto
Fulop, who has been the mayor of Jersey City since 2013, revealed his long-time support for the cryptocurrency industry despite its ups and downs. A Democrat, Fulop will contest New Jersey’s 2025 gubernatorial election since Governor Phil Murphy, a fellow Democrat, has already served two terms and is ineligible for re-election. Talking about the crypto industry, Fulop stated,
“Broadly, beyond crypto, I do believe blockchain is amongst the most important new technology innovations since the internet.”
With support for crypto and Bitcoin growing, politicians are keen to be viewed as more open to the concept, and sharing their opinions regarding the topic has become important during campaigns. Interest in spot Bitcoin ETFs has surged since their launch, with the ETFs recording billions in inflows over just six months. With the recent launch of Ethereum ETFs, crypto ETFs are taking center stage right in the middle of the lead-up to the presidential election.
Wisconsin Announced Similar Plan
Jersey City’s announcement comes only a couple of months after the state of Wisconsin announced the purchase of 94,562 shares of BlackRock’s iShares Bitcoin Trust (IBIT) worth almost $100 million, becoming the first state to disclose a purchase involving BTC. The state’s investment board also purchased shares of the Grayscale Bitcoin Trust (GBTC) worth $64 million. Speaking about the purchase, ETF analyst Eric Balchunas stated,
“Normally, you don’t get these big fish institutions in the 13Fs for a year or so (when the ETF gets more liquidity), but as we’ve seen, these are no ordinary launches. Good sign, expect more, as institutions tend to move in herds.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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